Bhakti Investama acquires Papua exploration block

IDX-listed investment company PT Bhakti Investama (Tbk) announced on Monday that it has signed a binding agreement to acquire a majority stake in a company that was awarded with an offshore Papua oil and gas block.

The founding shareholder will retain a minority interest and will serve as BHIT's local partner.

The block, which name is not disclosed, is considered as one of the most lucrative exploration opportunities in Indonesia attracting foreign oil and gas companies and Pertamina to explore this promising field, it claimed.

It claimed further that current study indicated that the block has an estimated recoverable reserve of more than billion barrels of oil.

BHIT together with its local partner will soon carry out a Work Program that has been approved by BP MIGAS, including seismic surveys to be completed this year, it added.

?We expect to drill one well next year. The local partner has been granted Petroleum Rights with a Work Program and Budget amounting to USD 87.4 million for duration of three years, which includes 2D seismic and two exploration drillings.?

The also said that it is currently conducting negotiations to acquire several other producing blocks. ?We hope to ink these deals soon.? The Company said.

Last month, the company also announced it has signed deal to jointly acquire an oil and gas exploration block located in South Sumatra with a local partner.

?With the acquisitions of the 2 exploration blocks and several producing blocks, BHIT has demonstrated its serious commitment to venture into the oil and gas arena and to continue to support the Government in boosting the domestic production of oil and gas.? (denny)